0248: GOVERNOR'S RECOMMENDATION (3-3-09) - FY 2009-10 HUMAN SERVICES BUDGET

FY 2009-10 HUMAN SERVICES BUDGET S.B. 248: GOVERNOR'S RECOMMENDATION

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Senate Bill 248 (as introduced)
Vehicle for Governor's Recommendation line items is Senate Bill 306.
Committee: Appropriations

Changes from FY 2008-09 Year-to-Date:
1. Program Caseload Adjustments. The Governor increased funding provided to the Family Independence Program (FIP) by ($51.5 million Gross/-$7.3 million GF), Child Care Fund ($16.2 million GF), Adoption Subsidy ($6.0 million Gross/$2.4 million GF) and State Supplementation ($362,700 GF). Funding for Foster Care (-$26.8 million Gross/-$4.7 million GF) and Child Day Care ($821,600 Gross) was reduced.	46,505,300
2. Child Welfare Improvements. The budget funds a number of increases to meet the requirements of the Children's Rights settlement reached in October of 2008. The budget provided 850.0 FTE and provided additional funds for private agency staffing, data collection, and other unidentified needs.	113,382,400
3. Small Program Increases. The budget provides additional Gross funding for outstation Medicaid eligibility workers ($1.4 million Gross), software upgrades ($1.4 million Gross/$600,000 GF), and increased an IDG provided to DELEG for SOAHR ($1.4 million Gross/$700,000 GF).	4,569,200
4. Authorization Increases. The budget recognized additional Federal authorization for Temporary Assistance for Needy Families (TANF) ($9.0 million) and Low Income Home Energy Assistance Program (LIHEAP) ($4.8 million). Additional Federal authorization was provided for Refugee Assistance ($5.0 million), facility licensing ($2.8 million), and prosecuting attorney contracts ($1.5 million).	25,662,500
5. Program/Grant Eliminations. The budget eliminated a number of grants and programs to drive GF/GP savings. Eliminated programs include Before and After School programs ($5.0 million), Zero to Three ($4.0 million), Teenage Parent Counseling ($3.8 million), Family Group Decision Making ($2.5 million), Marriage Initiative ($2.5 million), Fatherhood Initiative ($1.7 million, Friend of Court Supplement ($1.0 million), and the Kent Co. Pilot Project ($300,000).	(22,813,000)
6. Assistance Program Savings. The budget eliminated State Supplemental Security Income supplementation payments to independent recipients ($29.8 million GF), reduced CDC payments by 2.5% ($10.0 million GF), and recognized CDC administrative savings ($10.0 million GF) and FIP grant increases provided in FY 2008-09 ($6.7 million GF).	(57,598,300)
7. Program/Grant Reductions. The budget was adjusted to account for the end of Bridges implementation ($17.3 million Gross/$12.1 million GF). Grants were reduced for Community Protection and Permanency ($4.0 million TANF), Community Services Block Grant ($2.6 million TANF), and indigent burial ($1.7 million GF). Savings were claimed from elimination of the juvenile facility in Adrian and restructuring at the Maxey facility ($10.0 million Gross/$5.0 million GF).	(45,377,700)
8. Major GF/GP Fund Shifts. The budget reduced GF/GP needed to support the DHS appropriation. Carry-forward TANF contingency funds ($100.0 million) and enhanced Federal match savings associated with the Federal stimulus package ($16.2 million) are used to reduce GF/GP need in the FY 2009-10 DHS appropriation.	0
Total Changes	$87,860,800
FY 2009-10 Governor's Recommendation	$4,592,454,900

FY 2009-10 HUMAN SERVICES BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2008-09 Year to Date:

1. Multiple Employee Travel Prohibition. The Governor removed boilerplate that prohibited the Department from sending more than one employee to a conference or seminar outside the State, unless the cost of travel is funded through Federal or private sources. (Sec. 219)

2. Communication with the Legislature. The Governor removed current law boilerplate prohibiting the Department from disciplining an employee for communicating with a member of the Legislature or his or her staff. (Sec. 264)

3. Child and Family Services Reviews. The Governor removed current law boilerplate mandating a Department report outlining Department action to ensure compliance with Federal Child and Family Services Reviews (CFSR). (Sec. 271)

4. Information Technology Report. The Governor modified current boilerplate to remove a requirement that the Department identify the necessary resources to expand the Bridges system to link with the Law Enforcement Information Network (LEIN). (Sec. 280)

5. Out of State Child Placement. The Governor modified boilerplate governing the use of out-of-State child placement facilities. Current law language mandates that the Department is only permitted to place a child out of State if there is no appropriate in-State placement, the out-of-State facility meets licensing requirements, and the facility is within 100 miles of the child's home. New language requires documentation that there is not an appropriate in-State facility available for the child. (Sec. 513)

6. Foster Care Rate Language. The Governor removed current law boilerplate establishing administrative rates provided to private child placing agencies. (Sec. 546)

7. Relative Caregiver Language. The Governor modifies a portion of current law section Sec. 574 which provides $375,000 to support family incentive grants for necessary home improvements to accommodate foster children. New language would permit use of these funds for needed physical exams for foster children. (Sec. 574)

8. Child Welfare Improvement Report. The Governor modified boilerplate first included in the FY 2008-09 appropriation which consolidated child welfare reporting requirements included in the appropriation bill into a quarterly report. New language would replace with report with a new quarterly report on Michigan's progress in meeting the requirements of the Children's Rights lawsuit. (Sec. 582)

9. Private Agency Staff Training. The Governor recommended new boilerplate that would permit accredited foster care and adoption agencies to conduct their own staff training. Training materials and trainers must be accredited by the Department and documentation of the training provided to private agency staff must be submitted to the Department. (Sec. 585)

10. Community Services Block Grant. The Governor modified current law language that requires the Department to allocate $500,000 through a competitive bid process for education on the Earned Income Tax Credit (EITC). New language would allocate these funds to Community Action Agencies (CAA). (Sec. 1104)

Date Completed: 3-3-09 Fiscal Analyst: David Fosdick Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. HIdhs_gr.doc